Aguia Resources has achieved a major milestone in South America, securing the final operating licence for its Tres Estradas phosphate project in southern Brazil and immediately commencing mining operations.
The ASX-listed multi-commodity explorer has officially transitioned from developer to producer after Brazil's environmental agency, FEPAM, granted the licence, enabling the company to mine and process phosphate for the domestic market.
With the permitting process complete, Aguia has mobilised mining equipment to the site and started operations. The company will initially focus on removing topsoil and extracting high-grade blocks from the pit's north-eastern area.
First ore is expected to arrive at Aguia's refurbished processing plant in Caçapava do Sul for processing and bagging in the first week of June.
This move establishes Aguia as one of the few domestic phosphate producers in Brazil, a country heavily reliant on fertiliser imports that have faced supply disruptions and rising prices.
The project is located in Rio Grande do Sul, a major agricultural hub that currently imports all of its phosphate needs, totalling over five million tonnes annually.
Aguia Resources managing director and chief executive officer Timothy Hosking said: "Securing the operating license is a major milestone for Aguia and marks Tres Estradas' move into production. With all environmental approvals now secured, we are ready to begin operations, build stockpiles, and start processing through our plant at Caçapava do Sul."
The company's strategy involves a low-capital and low-operating cost model. Instead of building from scratch, Aguia acquired and extensively refurbished an existing processing plant, minimising capital outlay.
The Tres Estradas project is supported by a JORC-compliant mineral resource of 105.06 million tonnes, with a measured and indicated component of 83.21 million tonnes grading 4.11 per cent phosphorus pentoxide. A 2023 bankable feasibility study projected a mean annual EBITDA of A$25 million based on a 300,000-tonnes-per-annum operation.
Aguia's natural phosphate product, branded "PAMPAFOS", has received official product registration from Brazil's Ministry of Agriculture, Livestock and Food Supply (MAPA).
The company is strategically positioned to replace imported phosphate products, with recent market intelligence indicating a significant shortage of alternatives such as Super Simple Phosphate, Bayovar, and Moroccan phosphate at the nearby Rio Grande port.
Aguia holds a significant cost advantage, offering Pampafos at about A$222 per tonne, roughly 30 per cent cheaper than imported MAP fertiliser.
Strong inbound interest has been seen since launching the product at Brazil's largest agricultural fair in March. The company has signed non-binding memorandums of understanding for 44,000 tonnes with major commercial farms and cooperatives in Brazil and Uruguay.
While the Brazil phosphate operation is now the focus, Aguia also holds a portfolio of gold projects in Colombia, including the cash-flowing Santa Barbara mine, where production and recoveries have been steadily improving.
The journey from explorer to producer is notoriously difficult, especially in jurisdictions like Brazil. For Aguia, after years of navigating the complex permitting process, the final green light is now on. With mining underway and first ore set to be processed in weeks, the company is on the cusp of generating its first revenues from phosphate.
